Canada - Cayman Islands Tax Treaty

 AGREEMENT


                      BETWEEN

THE GOVERNMENT OF THE CAYMAN ISLANDS UNDER ENTRUSTMENT FROM THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND

                        AND


             THE GOVERNMENT OF CANADA


   FOR THE EXCHANGE OF INFORMATION ON TAX MATTERS

WHEREAS the Government of the United Kingdom has issued a letter of entrustment to the Government of the Cayman Islands (hereinafter "Cayman Islands") to negotiate, and conclude an agreement for the exchange of information on tax matters with the Government of Canada (hereinafter “Canada”):

THE GOVERNMENT OF THE CAYMAN ISLANDS and THE GOVERNMENT OF CANADA, desiring to facilitate the exchange of information with respect to taxes, have agreed as follows:

                                          Article 1
                           Object and Scope of this Agreement

 The competent authorities of the Parties shall provide assistance through exchange of

information that is foreseeably relevant to the administration and enforcement of the domestic laws of the Parties concerning taxes covered by this Agreement. Such information shall include information that is foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters. Information shall be exchanged in accordance with the provisions of this Agreement and shall be treated as confidential in the manner provided in Article 8.

 The rights and safeguards secured to persons by the laws or administrative practice of the

requested Party remain applicable to the extent that they do not unduly prevent or delay effective exchange of information.

                                          Article 2
                                        Jurisdiction

A requested Party is not obligated to provide information which is neither held by its authorities nor in the possession or control of persons who are within its territorial jurisdiction.

Article 3 Taxes Covered

The taxes which are the subject of this Agreement are, in the case of Canada, all taxes on income and on capital imposed or administered by the Government of Canada, and in the case of the Cayman Islands, all taxes on income and on capital imposed or administered by the Cayman Islands, including any taxes on income and on capital imposed or administered after the date of signature of this Agreement.

                                          Article 4
                                         Definitions

 For the purposes of this Agreement, unless otherwise defined:


 (a) the term “Party” means the Cayman Islands or Canada as the context requires;


 (b) the term “competent authority” means:


         (i) in the case of Canada, the Minister of National Revenue or the Minister’s
         authorised representative;


         (ii) in the case of the Cayman Islands, the Tax Information Authority or its
         authorised representative;


 (c) the term “person” includes an individual, a company, a partnership and any other
 body of persons;


 (d) the term “company” means any body corporate or any entity that is treated as a body
 corporate for tax purposes;


 (e) the term “publicly traded company” means any company whose principal class of
 shares is listed on a recognised stock exchange provided that its listed shares can be
 readily purchased and sold by the public. Shares can be purchased or sold “by the public”


                                          3

if the purchase or sale of shares is not implicitly or explicitly restricted to a limited group of investors;

    (f) the term “principal class of shares” means the class or classes of shares representing a
    majority of the voting power and value of the company;


    (g) the term “recognised stock exchange” means any stock exchange agreed upon by the
    competent authorities of the Parties;


    (h) the term “collective investment fund or scheme” means any pooled investment
    vehicle, irrespective of legal form. The term “public collective investment fund or
    scheme” means any collective investment fund or scheme provided the units, shares or
    other interests in the fund or scheme can be readily purchased and sold, or readily
    purchased and redeemed, by the public. Units, shares or other interests in the fund or
    scheme can be readily purchased, sold or redeemed “by the public” if the purchase, sale
    or redemption is not implicitly or explicitly restricted to a limited group of investors;


    (i) the term “tax” means any tax to which this Agreement applies;


    (j) the term “applicant Party” means the Party requesting information;


    (k) the term “requested Party” means the Party requested to provide information;


    (l) the term “information gathering measures” means laws and administrative or judicial
    procedures that enable a Party to obtain and provide the requested information; and


    (m) the term “information” means any fact, statement or record in any form whatever.

 As regards the application of this Agreement at any time by a Party, any term not defined

therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that Party, any meaning under the applicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party.

Article 5 Exchange of Information upon Request

 The competent authority of the requested Party shall provide upon request information

for the purposes referred to in Article 1. Such information shall be exchanged without regard to whether the conduct being investigated would constitute a crime under the laws of the requested Party if such conduct occurred in the territory of the requested Party.

 If the information in the possession of the competent authority of the requested Party is

not sufficient to enable it to comply with the request for information, that Party shall use all relevant information gathering measures to provide the applicant Party with the information requested, notwithstanding that the requested Party may not need such information for its own tax purposes.

 If specifically requested by the competent authority of the applicant Party, the competent

authority of the requested Party shall provide information under this Article, to the extent allowable under its domestic laws, in the form of depositions of witnesses and authenticated copies of original records.

 Each Party shall ensure that its competent authority for the purposes specified in Article 1

of this Agreement, has the authority to obtain and provide upon request:

    (a) information held by banks, other financial institutions, and any person acting in an
    agency or fiduciary capacity including nominees and trustees;


    (b) information regarding the ownership of companies, partnerships, trusts, foundations,
    “Anstalten” and other persons, including, within the constraints of Article 2, ownership
    information on all such persons in an ownership chain; in the case of trusts, information
    on settlors, trustees and beneficiaries; and in the case of foundations, information on
    founders, members of the foundation council and beneficiaries. This Agreement does not
    create an obligation on the Parties to obtain or provide ownership information with
    respect to publicly traded companies or public collective investment funds or schemes
    unless such information can be obtained without giving rise to disproportionate
    difficulties.


                                              5

5. The competent authority of the applicant Party shall provide the following information to the competent authority of the requested Party when making a request for information under this Agreement to demonstrate the foreseeable relevance of the information to the request:

    (a) the identity of the person under examination or investigation;


    (b) a statement of the information sought including its nature and the form in which the
    applicant Party wishes to receive the information from the requested Party;


    (c) the tax purpose for which the information is sought:


    (d) grounds for believing that the information requested is held in the territory of the
    requested Party or is in the possession or control of a person within the jurisdiction of the
    requested Party;


    (e) to the extent known, the name and address of any person believed to be in possession
    of the requested information;


    (f) a statement that the request is in conformity with the law and administrative practices
    of the applicant Party, that if the requested information was within the jurisdiction of the
    applicant Party then the competent authority of the applicant Party would be able to
    obtain the information under the laws of the applicant Party or in the normal course of
    administrative practice and that it is in conformity with this Agreement; and


    (g) a statement that the applicant Party has pursued all means available in its own
    territory to obtain the information, except those that would give rise to disproportionate
    difficulties.

 The competent authority of the requested Party shall immediately confirm receipt of a

request in writing to the competent authority of the applicant Party and shall:

    (a) notify the competent authority of the applicant Party, within 60 days of receiving the
    request, of any deficiencies in the request;




                                              6

(b) notify the competent authority of the applicant Party, within 90 days of receiving the request, of the intention to refuse the request or of any obstacle preventing the requested Party from fulfilling the request;

     (c) inform the competent authority of the applicant Party of the grounds for the refusal of
     the request or the nature of the obstacles to processing the request;


     (d) provide the requested information within 90 days of receiving the request or, in the
     event that there is an obstacle to fulfilling the request, advise the competent authority of
     the applicant Party of the estimated additional time required to fulfill the request.




                                           Article 6
                                 Tax Examinations Abroad

  A Party may allow representatives of the competent authority of the other Party to enter

the territory of the first-mentioned Party to interview individuals and examine records with the written consent of the persons concerned. The competent authority of the second-mentioned Party shall notify the competent authority of the first-mentioned Party of the time and place of the meeting with the individuals concerned.

  At the request of the competent authority of one Party, the competent authority of the

other Party may allow representatives of the competent authority of the first-mentioned Party to be present at the appropriate part of a tax examination in the territory of the second-mentioned Party.

  If the request referred to in paragraph 2 is acceded to, the competent authority of the

Party conducting the examination shall, as soon as possible, notify the competent authority of the other Party about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the first-mentioned Party for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the Party conducting the examination.

Article 7 Possibility of Declining a Request

 The requested Party shall not be required to obtain or provide information that the

applicant Party would not be able to obtain under its own laws for purposes of the administration or enforcement of its own tax laws. The competent authority of the requested Party may decline to assist where the request is not made in conformity with this Agreement.

 The provisions of this Agreement shall not impose on a Party the obligation to supply

information which would disclose any trade, business, industrial, commercial or professional secret or trade process. Notwithstanding the foregoing, information of the type referred to in Article 5, paragraph 4 shall not be treated as such a secret or trade process merely because it meets the criteria in that paragraph.

 The provisions of this Agreement shall not impose on a Party the obligation to obtain or

provide information, which would reveal confidential communications between a client and an attorney, solicitor or other admitted legal representative where such communications are produced for the purposes of:

    (a) seeking or providing legal advice, or
    (b) use in existing or contemplated legal proceedings.

 The requested Party may decline a request for information if the disclosure of the

information would be contrary to public policy (ordre public).

 A request for information shall not be refused on the ground that the tax claim giving rise

to the request is disputed.

 The requested Party may decline a request for information if the information is requested

by the applicant Party to administer or enforce a provision of the tax law of the applicant Party, or any requirement connected therewith, which discriminates against a national of the requested Party as compared with a national of the applicant Party in the same circumstances.

Article 8 Confidentiality

Any information received by a Party under this Agreement shall be treated as confidential and may be disclosed only to persons or authorities (including courts and administrative bodies) in the jurisdiction of the Party concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, taxes in that jurisdiction. Such persons or authorities shall use such information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. The information may not otherwise be disclosed to any other person or entity or authority or any other jurisdiction without the express written consent of the competent authority of the requested Party.

                                           Article 9
                                             Costs

Incidence of costs incurred in providing assistance shall be agreed by the competent authorities of the Parties.

                                           Article 10
                                Implementation Legislation

The Parties shall enact any legislation necessary to comply with, and give effect to, the terms of this Agreement.

                                           Article 11
                   Other International Agreements or Arrangements

The possibilities of assistance provided by this Agreement do not limit, nor are they limited by, those contained in existing international agreements or other arrangements between the Parties which relate to co-operation in tax matters.

Article 12 Mutual Agreement Procedure

 Where difficulties or doubts arise between the Parties regarding the implementation or

interpretation of this Agreement, the competent authorities shall endeavour to resolve the matter by mutual agreement.

 In addition to the agreements referred to in paragraph 1, the competent authorities of the

Parties may mutually agree on the procedures to be used under Articles 5 and 6.

 The competent authorities of the Parties may communicate with each other directly for

purposes of reaching agreement under this Article.

 The Parties may also agree on other forms of dispute resolution.




                                      Article 13
                                  Entry into Force

 This Agreement is subject to ratification, acceptance or approval by the Parties, in

accordance with their respective laws. Notification in writing of the completion of each Party’s necessary internal procedures for entry into force shall be exchanged as soon as possible.

 This Agreement shall enter into force on the date of the later of the notifications under

paragraph 1. Upon entry into force, it shall have effect:

    (a) for tax matters involving intentional conduct which is liable to prosecution under the
    criminal laws of the Applicant Party (irrespective of whether contained in the tax laws,
    the criminal code or other statutes), on that date, but only in respect of taxable periods
    beginning on or after January 1, 2004 or, where there is no taxable period, for all charges
    to tax arising on or after January 1, 2004, and




                                             10

(b) for all other matters covered in Article 1, on that date, but only in respect of taxable periods beginning on or after that date, or where there is no taxable period, all charges to tax arising on or after that date.

                                          Article 14
                                         Termination

 A Party may terminate this Agreement by serving a notice of termination through

diplomatic channels to the other Party.

 Such termination shall become effective on the first day of the month following the

expiration of a period of six months after the date of the notice of termination.

 Where a Party terminates this Agreement, both Parties shall remain bound by the

provisions of Article 8 with respect to any information obtained under this Agreement.

IN WITNESS WHEREOF, the undersigned being duly authorised thereto, have signed this Agreement.

SIGNED in duplicate at Grand Cayman this 24th day of June 2010, in the English and French languages, each version being equally authentic.

FOR THE GOVERNMENT OF FOR THE GOVERNMENT THE CAYMAN ISLANDS: OF CANADA:

HON. W. MCKEEVA BUSH OBE, JP HIS EXCELLENCY PREMIER AND MINISTER FOR MR STEPHEN HALLIHAN FINANCE, TOURISM & DEVELOPMENT CANADIAN HIGH COMMISSIONER TO JAMAICA

PROTOCOL

At the time of signing of this Agreement between the Government of Canada and the Government of the Cayman Islands under Entrustment from the Government of the United Kingdom of Great Britain and Northern Ireland for the Exchange of Information on Tax Matters, the undersigned have agreed upon the following provisions which shall be an integral part of this Agreement.

    1. With reference to paragraph 2(a) of Article 13, if at the time of the submission of a
    request by a Party, or at any time thereafter, the competent authority of the applicant
    Party is of the view that it is necessary to request supplemental information which
    predates January 1, 2004 which is related to its primary request and is relevant to a
    criminal tax matter to which this Agreement refers, the requested party shall grant such a
    request.


    2. Before making a supplemental request for information referred to in paragraph 1 above
    the competent authority of the applicant Party shall consult with the competent authority
    of the requested Party on the likely availability of the supplemental information.

IN WITNESS WHEREOF, the undersigned being duly authorised thereto, have signed this Protocol.

SIGNED in duplicate at Grand Cayman this 24th day of June 2010, in the English and French languages, each version being equally authentic.

FOR THE GOVERNMENT OF FOR THE GOVERNMENT THE CAYMAN ISLANDS: OF CANADA:

HON. W. MCKEEVA BUSH OBE, JP HIS EXCELLENCY PREMIER AND MINISTER FOR MR STEPHEN HALLIHAN FINANCE, TOURISM & DEVELOPMENT CANADIAN HIGH COMMISSIONER TO JAMAICA

Canada - Cayman Islands Tax Treaty

Disclaimer